Redwire Rockets Forward with $925M Edge Autonomy Acquisition
Deal News | Jan 21, 2025 | EIN
Redwire Corporation, a leader in space infrastructure, announced a significant expansion move by acquiring Edge Autonomy for $925 million. This acquisition is structured with $150 million in cash and $775 million in Redwire common stock. Redwire acknowledges various options for financing the cash portion, including leveraging its balance sheet or seeking external debt facilities, potentially adjusting share issuance dependent on market conditions. The inclusion of Edge Autonomy’s advanced uncrewed airborne system technology is expected to bolster Redwire’s integration across space and airborne domains. This transaction is projected to complete in Q2 2025, subject to regulatory approvals. A strategic agreement also allows AEI four seats on Redwire's board, contingent on ownership levels, with a provision for a six-month lock-up period on shares. The deal anticipates immediate accretive impacts on Redwire’s financials, projecting the combined entity to achieve substantial revenue and Adjusted EBITDA by 2025.
Sectors
- Aerospace & Defense
- Financial Services
Geography
- United States – Redwire Corporation is based in the United States, and the strategic acquisition deal is taking place within this geographical context.
Industry
- Aerospace & Defense – The acquisition involves companies providing technology and services related to uncrewed airborne systems and space infrastructure, key components of the Aerospace & Defense industry.
- Financial Services – The structuring of the acquisition, including the cash payment and stock issuance, involves financial strategies and considerations typical within Financial Services.
Financials
- $925 million – The total value of the acquisition deal between Redwire Corporation and Edge Autonomy.
- $150 million – The cash portion of the transaction.
- $775 million – The portion of the transaction paid in Redwire common stock.
- 535 million - $605 million – Projected revenue for the combined company in 2025.
- $70 million - $105 million – Projected Adjusted EBITDA for the combined company in 2025.
- $43.09 million – Cash and equivalents held by Redwire as of September 30, 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Redwire Corporation | Bidding Company | Company | A company specializing in space infrastructure, acquiring Edge Autonomy to enhance its technology integration. |
| Edge Autonomy | Target Company | Company | Formed from the merger of UAV Factory and Jennings Aeronautics, it provides advanced uncrewed airborne system technology. |
| AE Industrial Partners (AEI) | Investor | Company | An investment firm that will have significant board representation post-acquisition based on ownership share conditions. |
| Genesis Park Holdings | Investor | Company | A stakeholder involved in the amended Investor Rights Agreement with Redwire. |
| Edge Autonomy Ultimate Holdings | Seller | Company | An entity involved in the sale of Edge Autonomy to Redwire. |